TITLE economic-regulation

Part II. Public Utility Commission of Texas

Chapter 22. Practice and Procedure

Subchapter M. Procedures and Filing Requirements in Particular Commission Proceedings

16 TAC §§22.241, 22.242, 22.243, 22.244

The Public Utility Commission of Texas (commission) adopts amendments to §22.241 relating to Investigations and §22.244 relating to Review of Municipal Rate Actions with no changes to the proposed text as published in the January 15, 1999, issue of the Texas Register (24 TexReg 285). The commission adopts amendments to §22.242 relating to Complaints and §22.243 relating to Rate Change Proceedings with changes to the proposed text as published in the January 15, 1999, issue of the Texas Register (24 TexReg 285). These amendments are adopted under Project Number 17709.

The Appropriations Act of 1997, HB 1, Article IX, Section 167 (Section 167) requires that each state agency review and consider for readoption each rule adopted by that agency pursuant to Government Code, Chapter 2001. Such reviews shall include, at a minimum, an assessment by the agency as to whether the reason for adopting or readopting the rule continues to exist. The commission had invited specific comments regarding the Section 167 requirement, as to whether the reason for adopting these rules continues to exist, in the comments on the proposed amendments. No interested persons commented on the Section 167 requirement. The commission finds that the reason for adopting these sections continues to exist.

The commission received comments on the proposed amendments from Central Power and Light Company (CPL), Southwestern Electric Power Company (SWEPCO) and West Texas Utilities Company (WTU), the Texas electric utility operating companies of the Central and South West Corporation (collectively CSW Companies); Southwestern Bell Telephone Company (SWBT); Texas Electric Cooperatives, Inc. (TEC); and Texas Utilities Electric Company (TUEC).

The amendments to §22.241 and §22.244 are necessary to update citations to the Public Utility Regulatory Act (PURA) as codified in the Texas Utilities Code and conform the sections to current commission practice and organization. The commission received no comments on the proposed amendments for these two sections.

Section 22.242 relating to Complaints

SWBT suggested that the language in §22.242(a) regarding the length of time the commission shall retain complaint records be more specifically stated. SWBT proposed changing "reasonable period" to "a period of two years from date of filing of complaint."

The commission agrees that the language "reasonable period" should be stated more specifically. However, the language proposed by SWBT does not meet the minimum requirements for state records. All state agencies are required to meet the minimum record keeping requirements as adopted by the Texas State Library and Archives Commission and the requirements of the agency's approved records retention schedule. The minimum state requirement for complaints is two years after final disposition of the complaint. The commission's approved retention schedule requires that paper copies be kept two years after final disposition of the complaint and that the electronic database for complaints be kept five years after final disposition of the complaint. The commission modifies §22.242(a) to state "The commission shall retain the information pursuant to the agency's records retention schedule as approved by the Texas State Library and Archives Commission."

SWBT noted that §22.242(d) proposes modifying the time the commission's Office of Customer Protection shall attempt to informally resolve all complaints from 45 days to 30 days, and that this timeline is directly related to the proposed 15 day response time for utilities in Project Number 19517, Transfer of Existing Telephone Customer Service and Protection Rules to Chapter 26 and Associated Changes. SWBT suggest that this amendment not be adopted until after the rules in Project Number 19517 are adopted, so that the language can be modified if necessary.

The commission agrees that this proposed change should be adopted along with the proposed changes under Project Number 19517 and also Project Number 19513, Transfer of Existing Electric Customer Service and Protections Rules to Chapter 25 and Associated Changes. The adoption of these amendments will coincide with the adoption of the commission's new customer service and protection rules. Under proposed §25.30(c)(2) of this title (relating to Complaints) and proposed §26.30(c)(2) of this title (relating to Complaints) an electric or telecommunications utility shall investigate all complaints and advise the commission in writing of the results of the investigation within 15 days after the complaint is forwarded to the electric utility. In adopting these sections, the 15 days was modified to 21 days. As a result of this increased time period, the 30 day period proposed in §22.242(d) has been increased to 35 days.

CSW Companies comments that the commission has recently been required to adjudicate through the preliminary order process an issue concerning the time required for an appeal of a municipal rate action, and suggests a change to §22.242 to incorporate the results of that adjudication in its rules to codify its decision. In its Preliminary Order in Docket Number 20011, Complaint of Los Fresnos Consolidated Independent School District, et. al. (February 5, 1999), the commission ruled that rate complaints involving billing issues rather than general rate cases are not governed by the Public Utility Regulatory Act (PURA), Chapter 33. However, the commission expressed during the February 4, 1999 Open Meeting that some time deadline should be established for handling such complaints, but that it need not be the 30 days required under PURA §33.053. CSW Companies suggested adding language to §22.242(e)(1)(A) to require that such complaints be filed no later than 60 days after the city issues a decision on the complaint; or the city issues a statement that it will not consider the complaint or a class of complaints that includes the person's complaint.

The commission agrees that the commissioners' decision in Docket Number 20011 should be codified in its rules. However, the modification requested by CSW Companies is outside the scope of this proceeding, as it would place a new requirement on utility customers that has not been published for comment. The commission will initiate a project to further amend 22.242.

TUEC comments on the commission's proposed change to §22.242(e)(1)(B), which added language: "If the city does not act on the complaint within 30 days, the commission may send the city a letter requesting that the city act on the complaint. If the city does not respond or act within 15 days, the complaint shall be deemed denied by the city and the commission shall consider the complaint." TUEC states that this is beyond the authority of the commission to adopt because PURA §33.053(b) permits an appeal only of the "final decision by the governing body of the municipality". TUEC comments that a city's failure to act, even after a commission request to do so, does not constitute a "final decision". Without a final decision, there is no basis upon which the commission can hear the complaint as jurisdiction will not exist resulting in an order that is void ab initio.

TUEC further stated that even if the commission could transform the failure of a municipality to act into a final decision, (1) the city most likely would be unable to act within the 15-day period specified due to open meeting notice requirements; (2) the exact time when the time period starts should be clarified (i.e., 15 days from the date of the letter or receipt of the letter); and (3) the proposed provision that states the commission will automatically consider the complaint should be deleted.

The commission finds that this provision is necessary to protect the public interest and ensure that utility customers within the boundaries of a municipality having original jurisdiction have the opportunity to invoke the commission's appellate jurisdiction. Consideration of a complaint after giving the municipality a reasonable opportunity to act appropriately balances deference to the municipality's original jurisdiction and the right of customers to have their complaints considered and resolved.

The commission agrees with TUEC that a city would most likely be unable to act within the 15-day specified period and has increased this to 30 days from the date the commission dates the letter. The commission does not delete the phrase "and the commission shall consider the complaint". The commission considers all complaints that are filed, whether the decision is to deny or to grant the relief requested. Section 22.243 relating to Rate Change Proceedings.

Section 22.243 relating to Rate Change Proceedings

TEC comments that the provision in §22.243(a) which requires electric utilities or public utilities to file a statement of intent with the regulatory authority having original jurisdiction at least 35 days prior to the effective date of the proposed change does not apply to electric cooperatives that have elected to be exempt from rate regulation under PURA, Chapter 36. TEC suggested adding the following language to subsection (a): "No electric utility or public utility, other than an electric cooperative that has elected to be exempt from rate regulation under chapter 36 of PURA, may make changes…."

The commission agrees and has made the appropriate change.

These amendments are adopted under the Public Utility Regulatory Act, Texas Utilities Code Annotated §14.002 and §14.052 (Vernon 1998) (PURA) which provides the commission with the authority to make and enforce rules reasonably required in the exercise of its powers and jurisdiction, including rules of practice and procedure.

Cross-Index to Statutes: Public Utility Regulatory Act §14.002 and §14.052.

§22.242.Complaints.

(a)

Records of complaints. Any affected person may complain to the commission, either in writing or by telephone, setting forth any act or thing done or omitted to be done by any electric utility or telecommunications utility in violation or claimed violation of any law which the commission has jurisdiction to administer or of any order, ordinance, rule, or regulation of the commission. The Office of Customer Protection may request a complaint made by telephone be put in writing if necessary to complete investigation of the complaint. The commission shall keep information about each complaint filed with the commission. The commission shall retain the information pursuant to the agency's records retention schedule as approved by the Texas State Library and Archives Commission. The information shall include:

(1)-(6)

(No change.)

(b)

(No change.)

(c)

Informal resolution required in certain cases. A person who is aggrieved by the conduct of an electric utility or telecommunications utility or other person must present a complaint to the Office of Customer Protection for informal resolution before presenting the complaint to the commission.

(1)

Exceptions. A complainant may present a formal complaint to the commission, without first referring the complaint for informal resolution, if:

(A)

the complainant is the Office of Regulatory Affairs, the Office of Customer Protection, the Office of Public Utility Counsel, or any city;

(B)

the complaint is filed by a qualifying facility and concerns rates paid by an electric utility for power provided by the qualifying facility, the terms and conditions for the purchase of such power, or any other matter that affects the relations between an electric utility and a qualifying facility;

(C)

the complaint is filed by a person alleging that an electric utility or a telecommunications utility has engaged in anti-competitive practices; or

(D)

the complaint has been the subject of a complaint proceeding conducted by a city.

(2)

For any complaint that is not listed in paragraph (1) of this subsection, the complainant may submit to the Office of Customer Protection a written request for waiver of the requirement for attempted informal resolution. The complainant shall clearly state the reasons informal resolution is not appropriate. The Office of Customer Protection may grant the request for good cause.

(d)

Termination of informal resolution. The Office of Customer Protection shall attempt to informally resolve all complaints within 35 days of the date of receipt of the complaint. The Office of Customer Protection shall notify, in writing, the complainant and the person against whom the complainant is seeking relief of the status of the dispute at the end of the 35-day period. If the dispute has not been resolved to the complainant's satisfaction within 35 days, the complainant may present the complaint to the commission. The Office of Customer Protection shall notify the complainant of the procedures for formally presenting a complaint to the commission.

(e)

Formal Complaint. If an attempt at informal resolution fails, or is not required under subsection (c) of this section, the complainant may present a formal complaint to the commission.

(1)

Requirement to present complaint concerning electric utility to a city. If a person receives electric utility service or has applied to receive electric utility service within the limits of a city that has original jurisdiction over the electric utility providing service or requested to provide service, the person must present any complaint concerning the electric utility to the city before presenting the complaint to the commission.

(A)

The person may present the complaint to the commission after:

(i)

the city issues a decision on the complaint; or

(ii)

the city issues a statement that it will not consider the complaint or a class of complaints that includes the person's complaint.

(B)

If the city does not act on the complaint within 30 days, the commission may send the city a letter requesting that the city act on the complaint. If the city does not respond or act within 30 days from the date of the letter, the complaint shall be deemed denied by the city and the commission shall consider the complaint.

(2)

The Office of Policy Development may permit a complainant to cure any deficiencies under this subsection and may waive any of the requirements of this subsection for good cause, if the waiver will not materially affect the rights of any other party. A formal complaint shall include the following information:

(A)

the name of the complainant or complainants;

(B)

the name of the complainant's representative, if any;

(C)

the address, telephone number, and facsimile transmission number, if available, of the complainant or the complainant's representative;

(D)

the name of the electric utility or telecommunications utility or other person against whom the complainant is seeking relief;

(E)

if the complainant is seeking relief against an electric utility, a statement of whether the complaint relates to service that the complainant is receiving within the limits of a city;

(F)

if the complainant is seeking relief against an electric utility within the limits of a city, a description of any complaint proceedings conducted by the city, including the outcome of those proceedings;

(G)

a statement of whether the complainant has attempted informal resolution through the Office of Customer Protection and the date on which the informal resolution was completed or the time for attempting the informal resolution elapsed;

(H)

a description of the facts that gave rise to the complaint; and

(I)

a statement of the relief that the complainant is seeking.

(f)

Copies to be provided. A complainant shall file eight copies of the formal complaint. A complainant shall provide a copy of the formal complaint to the person from whom relief is sought.

(g)

Docketing of complaints. The Office of Policy Development shall docket any complaint that substantially complies with the requirements of this section.

(h)

Continuation of service during processing of complaint. In any case in which a formal complaint has been filed and an allegation is made that an electric utility or a telecommunications utility or other person is threatening to discontinue a customer's service, the presiding officer may, after notice and opportunity for hearing, issue an order requiring the electric utility or telecommunications utility or other person to continue to provide service during the processing of the complaint. The presiding officer may issue such an order for good cause, on such terms as may be reasonable to preserve the rights of the parties during the processing of the complaint.

(i)

List of cities without regulatory authority. The Office of Customer Protection shall maintain and make available to the public a list of the municipalities that do not have exclusive original jurisdiction over all electric rates, operations, and services provided by an electric utility within its city or town limits.

§22.243.Rate Change Proceedings.

(a)

Statements of intent. No electric utility or public utility, other than an electric cooperative that has elected to be exempt from rate regulation under the Public Utility Regulatory Act, Chapter 36, may make changes in its rates except by filing a statement of intent with the regulatory authority having original jurisdiction at least 35 days prior to the effective date of the proposed change. The statement of intent shall include proposed revisions of tariffs and schedules and a statement specifying in detail each proposed change, the effect the proposed change is expected to have on the revenues of the electric utility or public utility, the effective date of the proposed rate change, the classes and numbers of utility ratepayers affected, and a description of the service for which a change is requested. For major rate proceedings, the expected change in revenues must be expressed as an annual dollar increase over adjusted test year revenues and as a percent increase over adjusted test year revenues.

(b)

Rate filing package. Any electric utility or public utility filing a statement of intent to change its rates in a major rate proceeding under the Public Utility Regulatory Act (PURA), Chapter 36, Subchapter C or Chapter 53, Subchapter C shall file a rate filing package and supporting workpapers as required by the commission's current rate filing package at the same time it files a statement of intent. The rate filing package shall be securely bound under cover, and shall include all information required by the commission's rate filing package form in the format specified. Examination for sufficiency and correction of deficiencies in rate filing packages are governed by §22.75 of this title (relating to Examination and Correction of Pleadings).

(c)

(No change.)

This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on April 21, 1999.

TRD-9902371

Rhonda Dempsey

Rules Coordinator

Public Utility Commission of Texas

Effective date: May 11, 1999

Proposal publication date: January 15, 1999

For further information, please call: (512) 936-7308


16 TAC §22.245

The Public Utility Commission of Texas (commission) adopts the repeal of §22.245, relating to Notice of Intent Petitions with no changes to the proposed text as published in the January 15, 1999, issue of the Texas Register (24 TexReg 288). Project Number 17709 is assigned to this proceeding. The Appropriations Act of 1997, HB 1, Article IX, Section 167 (Section 167) requires that each state agency review and consider for readoption each rule adopted by that agency pursuant to the Government Code, Chapter 2001 (Administrative Procedure Act). Such reviews shall include, at a minimum, an assessment by the agency as to whether the reason for adopting or readopting the rule continues to exist. Section 22.245 applies only to utilities filing a notice of intent to file an application for a certificate of convenience and necessity for a new generating plant. These applications are now processed under Chapter 25, Subchapter H, Electrical Planning, and a notice of intent petition is no longer required. The commission finds that the reason for adopting this section no longer exist.

The commission received no comments on the proposed repeal.

This repeal is adopted under the Public Utility Regulatory Act, Texas Utilities Code Annotated §14.002 and §14.052 (Vernon 1998) (PURA) which provides the commission with the authority to make and enforce rules reasonably required in the exercise of its powers and jurisdiction, including rules of practice and procedure.

Cross-Index to Statutes: Public Utility Regulatory Act §14.002 and §14.052.

This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on April 21, 1999.

TRD-9902372

Rhonda Dempsey

Rules Coordinator

Public Utility Commission of Texas

Effective date: May 11, 1999

Proposal publication date: January 15, 1999

For further information, please call: (512) 936-7308